We have a price target of 482 on Titagarh wagons: Jigar Shah

Jigar Shah, Sr. VP & Head of Research, Kimeng Securities India Pvt. Ltd.

You have recommendations in Titagarh Wagons as well as Texmaco. What’s the prognosis and what’s the target there?

We like the railway infrastructure stocks, particularly because the companies will have very good order backlogs once the new orders are announced in another one month and also from the 18000/80000 wagons that railway has announced in this budget.

The earnings growth that we foresee for both Texmaco and Titagarh is in the range of 30-35% for FY11 and we have a price target on Titagarh Wagons at 482 and for Texmaco the price target is Rs. 202. We feel that at this current price the stocks have declined between 15-20% in the very short period of time. They are a very good buy and both are also net cash companies, so there is a strong balance sheet to back their expansion programme as well.